Hovnanian Enterprises |
|
|---|---|
| 2017 Performance Final Grade: 57.15/1002016 Final Grade: 70.0/100 | C-/B- |
| Change YoY | ||
|---|---|---|
| Net debt-to-capital | 119.3% | 2,380bps |
| Pretax home building income (in millions) | $36.6 | -53.4% |
| Total SG&A/Total revenue | 12.6% | -- |
| Total SG&A(in millions) | $291.8 | 2.4% |
| Return on invested capital | -27.8% | -2,950bps |
| Return on equity | -117.2% | -12,690bps |
| Total shareholder return | 26.9% | -- |
| EPS | -$2.46 | -2842% |
| Change YoY | ||
|---|---|---|
| Community count | 140 | -17 |
| Share of lots optioned to total controlled | 54.9% | 14.2% |
| Change YoY | ||
|---|---|---|
| Home building gross margins | 17.6% | 170bps |
| Sales per month to break even (per community) |
1.94 | -- |
| Revenue per employee (in millions) |
$1.2 | -12.6% |
| Change YoY | ||
|---|---|---|
| Closings | 5,337 | -15.7% |
| Sales velocity (per community per month) |
3.0 | -0.5% |
| Unit backlog | 2,004 | -11.8% |
| Total revenue (in millions):$2,316 |
| HB revenue (in millions): $2,210 |
| Debt per share: $10.79 |
| Equity per basic share: $3.32 |
| HB pretax margin: 1.6% |
| Backlog value (in millions): $814.4 |
| Inventory (in millions):$1,053.5 |
| Lot supply (in years): 4.7 |
Hovnanian (NYSE: HOV) is still digging out from the high-interest debt it took on after the housing crash. It decreased its community count in 2017 as it exited four underperforming markets and converted wholly owned communities into joint ventures. It paid off $320 million of maturing debt and is now focused in 2018 on pushing notes due over the next five years into the 2040s. Amid this, it improved gross margin percentage and contracts per community as 2017 closed.